High-carbon Ferrochrome Imports in July Rose Sharply and the Prices Fell amid Weak Demand and Supply Surplus

SHANGHAI, Aug 26 (SMM) - According to customs statistics, China's imports of high-carbon ferrochrome were 311,700 mt in July 2022, an increase of 181,600 mt or 139% from the previous month and up 128,000 mt or 69% on the year. From January to July 2022, imports of high-carbon ferrochrome totalled 1.3057 million mt, down 427,100 mt or 24.65%. The import volume from South Africa was 172,200 mt, an increase of 122,800 mt or 248.55% on the month, and up 57,000 mt or 49.44% on the year.

According to SMM research, as the steel mills further reduced the production amid the weak demand, the demand for ferrochrome declined, hence the domestic ferrochrome prices continued to decline. The huge increase in the imports in July was mainly because that the orders delayed due to the shortage of shipping capacity intensively arrived at ports in July. Although the domestic ferrochrome output declined, the impact was limited. In addition, the import volume increased significantly. Therefore, the supply surplus further intensified. The domestic demand for ferrochrome remains weak in August and the market holds a bearish outlook. In this scenario, the ferrochrome prices are expected to further decline.